The models are being made by Dodgy Clutch
Newcastle City Council has joined forces with the Tyneside comic and Whitley Bay-based theatre and arts company Dodgy Clutch.
They are making large models of favourite characters from the comic, such as Biffa Bacon, which will be taken to the Haymarket early on New Year's Eve.
The figures will then be burned in a ceremony inspired by the Spanish-style Fallas festival, which sees caricatures of politicians set alight every year in the city of Valencia.
'Pirouetting Fat Slag'
Dodgy Clutch is bringing over a Spanish artist to help with the project.
The central image of the Newcastle procession will be a 30-feet-high sculpture of a cartoon open-top bus.
The model makers are arranging crazy cantilevers for the bus, to give the impression it is out of control.
On board will be the famous Viz characters in traditional costume and emblazoned in a pageant of Geordie history, arts and culture.
Included will be Spoilt Bastard, The Fat Slags, Biffa Bacon, Millie Tant, and Mr Logic.
A spokesman for Viz said: "The pirouetting Fat Slag will be a sight to behold.
"However the Grim Reaper will be out to spoil the party, and the whole thing will go up in a spectacular fire and pyrotechnic display.
"He will be burning the lot of them."
Cartoonist and caricaturist Geoff Laws is also working on the project, which is funded by Newcastle City Council with support from the Regional Arts Lottery.
Organisers hope the Viz event will attract a family audience, to an evening designed to provide an irreverent but sympathetic take on Geordie stereotypes.